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Top 5 Affiliate Marketing Opportunities for 2006 Affiliate Summit 2006 January 9, 2006 Anne Holland, Publisher, MarketingSherpa

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The Hidden Success <ul><li>$6.5 billion in 2005 (low estimate) </li></ul><ul><li>Smartest, most entrepreneurial marketers on the planet </li></ul>

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Facts not Opinion: MarketingSherpa Methodology <ul><li>Data for our reports, case studies and newsletters is gathered from: </li></ul><ul><li>776 affiliate marketers & merchants surveyed </li></ul><ul><li>5,000+ email & search marketers surveyed </li></ul><ul><li>Eyetracking lab tests </li></ul><ul><li>Research partnerships w/ dozens of vendors </li></ul><ul><li>500+ exclusive Case Studies </li></ul>

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Source: MarketingSherpa Affiliate and Merchant Survey, August 2005 Affiliates & Search: Dramatic Shift Views on how affiliates use TMs are changing fast. Affiliates and Search 29% 39% 50% 21% 0% 10% 20% 30% 40% 50% 60% We essentially outsource our search engine marketing to our affiliates, and we give them free reign with TMs and branded terms. We don't allow our affiliates to use our TMs/branded terms in the search engine marketing. January '05 August '05

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Affiliates & Search Opportunity #1: News Releases Source: Shawn Collins Consulting, December 2004 Press releases are for customers, not journalists.

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Search News Opportunities by Niche Source: PR Newswire Data, August, 2005

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Affiliates & Search Dramatic change in PPC bidding Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005 and MarketingSherpa, Search Marketing Metrics Survey, June 2004 E-LOAN says bid management no longer makes competitive difference

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Affiliates & Search Opportunity #2: Landing Pages Source: Atlas DMT, Search Listing URL and Conversion, 04/2004

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Example: 30-50% conversion lift Source: Atlas DMT, Search Listing URL and Conversion, 04/2004

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Many landing pages still lame Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005 and MarketingSherpa, Search Marketing Metrics Survey, June 2004

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Example: Tall Women’s Clothing

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Example: Tall women’s clothing landing page

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Which search terms are worth extra work on landing pages? Keyword Research ROI – 5+ Years Exp. Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005

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Affiliates & Email Marketing <ul><li>Three Top Opportunities </li></ul>

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#1. Most actionable data: Opt-in recency affects response Source: InformZ for MarketingSherpa, October 2005 Age of User Record

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Example: New opt-in campaign Consider an educational 5-7x email series before sending clicks to merchants

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#2. Unexpected success data: Co-registration opt-ins Source: MarketingSherpa, Email Marketing Benchmark Survey, October 2005

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Example: co-registration

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Vendor recommendation <ul><li>Co-regComplete.com </li></ul>

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#3. Eye-opening data: Segmentation worth the effort Source: Topica for MarketingSherpa, October 2005 0.48% 4.14% 6.68% 30.86% Averages 0.20% 3.50% 1.10% 13.10% > 100K 0.80% 3.70% 4.00% 13.40% 50K–100K 0.50% 4.00% 7.60% 28.50% 10K–50K 0.30% 3.90% 9.00% 48.80% 5K–10K 0.60% 5.60% 11.70% 50.50% < 5K Clicks Opens Clicks Opens Not Segmented Segmented Audience Size Promotional Campaigns

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Example: Multi-article vs single article ezine

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Networking Guide for Affiliate Summit 2006 <ul><li>Who should you schmooze and how can you tell if they’ll be any good as partners? </li></ul>

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Merchants’ Affiliate Growth Plans Source: MarketingSherpa Affiliate and Merchant Survey, August 2005

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Picking the Best Affiliates: Merchant’s Revenue from Affiliates Source: MarketingSherpa Affiliate and Merchant Survey, August 2005

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What’s wrong with most affiliates?

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Two Main Types of Affiliates: (vast oversimplification) <ul><li>Branded </li></ul><ul><ul><li>Niche/targeted </li></ul></ul><ul><ul><li>Audience/topic passion </li></ul></ul><ul><ul><li>Custom creative does better </li></ul></ul><ul><ul><li>Enthusiast pubs </li></ul></ul><ul><li>Non-Branded </li></ul><ul><ul><li>Mass distribution </li></ul></ul><ul><ul><li>Cash is king </li></ul></ul><ul><ul><li>Generic creative ok – but optimize it </li></ul></ul><ul><ul><li>Late night cable ads </li></ul></ul>

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Create more *true* partnerships <ul><li>Marketing w/non-branded affiliates </li></ul><ul><li>Electronic Retailers Assn </li></ul><ul><li>Multivariate & eyetracking testing </li></ul><ul><li>Marketing w/ branded affiliates </li></ul><ul><li>More custom content </li></ul><ul><li>Click-didn’t-buy campaigns </li></ul><ul><li>Shared Web analytics </li></ul><ul><li>Affiliates partnering w/ each other </li></ul><ul><li>Exit pops/DHTML </li></ul><ul><li>Co-registration </li></ul>

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Together, let’s make 2006 a $10 billion year! <ul><li>FREE Offer: Deadline Jan 15th </li></ul><ul><li>Get ‘ MarketingSherpa’s Top 10 Email Newsletter Mistakes ’ </li></ul><ul><li>$20.00 report free with any purchase </li></ul><ul><li>www.SherpaStore.com www.SherpaStore.com </li></ul><ul><li>(877) 895-1717 </li></ul>MarketingSherpa, Inc. 499 Main Street Warren, RI 02885 (877) 895-1717 Outside the U.S.(401) 247-7655 http://www.MarketingSherpa.com